Foreclosure real estate investing can be a profitable niche for those who take time to learn the strategies.  Foreclosed realty encompasses a variety of properties including residential homes, vacant land, and commercial real estate.  As Investors, we must engage in due diligence by reviewing real estate comps and obtaining home inspections, property appraisals, and repair cost estimates to determine the true cost of buying foreclosure properties.  For the next couple of days I want to go over some investment strategies for buying these properties.

When buying foreclosure real estate, investors must be financially prepared to invest in property repairs or renovation.  While foreclosed properties are priced below market value, homes requiring substantial repair can quickly deplete home equity.  Several options exist for locating foreclosed properties at discounted prices. Once you have located a property be sure to use your InvestorCompsOnline account to research property valuation info.

The most common option to find foreclosed properties is to attend public foreclosure auctions.  All properties presented through auction are sold in “as-is” condition.  Buyers must be prepared to submit payment in full within 24 hours once their bid is accepted.  Once realty is transferred, property owners are responsible for removing creditor and tax liens and making necessary repairs.

Be sure and take a look at tomorrow’s post when I plan to run through short sales and how to benefit from those deals!